Delays dog Mersey's grace

The futuristic "fourth grace", the centrepiece of Liverpool's successful bid to become the European capital of culture in 2008, will not be built in time for the festival it emerged today.

The ambitious £200m project, designed by the architect Will Alsop, has been delayed over haggling about its feasibility.

The organisers of the capital of culture scheme had boasted that completion of the building, also known as the cloud, will be the highlight of the year's events. They now accept that at best only the exterior of the project will be completed by 2008.

The building is due to house a museum of Liverpool life, as well as offices and homes. But approval of the funding for the project has been delayed while doubts remain about the commercial viability of the building.

Liverpool MP Louise Ellman, a board member of the Liverpool Culture Company in charge of the 2008 celebrations, said: "It appears to be bogged down in feasibility studies. The decision making process needs to be speeded up."

"It has been put forward as a flagship project. It would be very disappointing if it did not go ahead."

But she added: "It is just one project, if it was not built in time it would in no way undermine our well deserved title."

Asked if the project had become Liverpool's Dome she said: "The feasibility has to be looked at carefully."

Richard Kemp, Liverpool council's former lead member for regeneration, said he was not surprised by the doubts over the project.

"I don't think there was enough thought about the practical issues when Will Alsop's design was taken on. It's not a building, it's a concept - someone needs to work out the practically of what you do inside."

But a spokesman for Mr Alsop insisted "it is not a design issue that is causing [the delay]. The construction programme has yet to be finalised." Bob Scott, chief executive of the Liverpool Culture Company, told the Liverpool Post last night that he was "calm" about the building missing the 2008 deadline.

"If things are not ready, then they can form part of the legacy of the capital of culture," he said.

A spokesman for the company added: "This is a detailed, complex and massive project - 2008 is a short time to get something this complex built."

The North West Development Agency, which is helping to fund the project denied it was withholding cash from the building. A spokeswoman pointed out that it had already agreed £5m of backing.